The upcoming discussion will update you about the difference between cost accounting and management accounting. Difference # Cost Accounting: 1. Deal with – Cost accounting deals with ascertainment, allocation, appointment and accounting aspect of costs. 2. Base – Cost accounting provides a base for management accounting. 3. Role – Cost accounting is helpful in collecting costing data for the management. [...]
The following points highlight the top eleven techniques management accounting. The techniques are: 1. Financial Planning 2. Analysis of Financial Statements 3. Historical Cost Accounting 4. Standard Costing 5. Budgetary Control 6. Marginal Costing 7. Funds Flow Statement 8. Cash Flow Statement 9. Decision Making 10. Revaluation Accounting 11. Statistical and Graphical Techniques 12. Communicating. Management Accounting: Technique # 1. Financial Planning: [...]
The following points highlight the ten major limitations of management accounting. The limitations are: 1. Based on Records 2. Lack of Knowledge and Understanding of the Related Subjects 3. Intuitive Decisions 4. Lack of Continuity and Coordination 5. No Substitute of Administration 6. Lack of Objectivity 7. Unquantifiable Variables 8. Costly 9. Not in Final Stage 10. Psychological Resistance. Management [...]